Also known as dram shop coverage, liquor liability insurance shields your business from financial losses and lawsuits after overserving alcohol. Whether you operate a bar or restaurant, this coverage is beneficial when an intoxicated customer damages property or harms others. Here are some ways this type of insurance protects your establishment:
Covers Your Legal Costs
When a patron drinks excessive alcohol in your bar, nightclub, or restaurant and causes an accident, harming others, you can face a lawsuit. Whether the claim is valid or not, you might have to defend yourself in court as a business owner. This means you have to hire a lawyer and pay for other legal expenses so that they can represent you in court.
With liquor liability insurance, it is easier to cover filing fees, court expenses, and expert witness testimony without using money from the business. You can also use the payment to cover other costs, including consultations, court appearances, and paperwork preparation. When you have sufficient insurance, your bar or nightclub continues operating instead of being closed due to drained finances.
Pays for Property Damage
Excessively drunk patrons may break furniture, glassware, electronics, and other equipment within your premises, causing losses. If you have purchased liquor liability coverage, it helps you repair and replace such items without using out-of-pocket finances. If an intoxicated individual causes an accident and breaks items belonging to others, this coverage pays for the damage.
To help you receive payment for the destruction caused, document these incidents so that an insurance company can check them. You may take photos, gather witness statements, and file incident reports, which are beneficial pieces of evidence. Once the incident occurs, report the issue to an insurer to begin the investigation right away.
Supports Local Law Compliance
In certain areas across the United States, liquor liability coverage is legally required if you serve or sell alcohol. When you have this insurance, it shows that your establishment takes responsibility for serving alcoholic drinks to customers safely. You can maintain your license and continue running your bar without any challenges with the law.
If you don’t purchase this form of protection, you might face risks, such as hefty fines and penalties. When you want to renew your license once it’s expired, authorities require proof of liquor liability coverage to process paperwork. Owning this insurance reduces delays and denials, which may prevent you from opening your business.
Caters to Settlement Needs
Instead of going to trial, some cases can be resolved through settlements, making it a better solution for the parties involved. For those injured, insurance helps pay for the costs of settlements to help them meet their daily needs and medical expenses. By compensating those who were injured or had property damaged, it reduces the possibility of legal action or disputes that ruin your reputation.
This reimbursement is also helpful for covering lost wages or pain and suffering after an incident. By handling settlement payments, this coverage protects your cash flow to avoid draining your finances. A qualified agent can check your policy to see if it covers your required compensation amounts.
Assists With Injury Claims
If a customer gets overly drunk and fights others within your establishment, you could be held responsible for such issues. An individual can also file a claim when they slip and fall, injuring themselves, and are unable to work. With liquor liability insurance, the injured party can pay for ambulance transport, emergency room visits, surgeries, and medications.
If the drunk patron injures another guest, a pedestrian, or staff, this type of insurance helps pay for their medical bills. Since some people may develop symptoms later on after they get injured, this coverage steps in to cover different costs when they file a claim. To allow your insurance to meet these needs, adjust your policy regularly to fulfill changing requirements.
Buy Liquor Liability Insurance Today
To allow your business to operate with less financial risk, purchase liquor liability insurance, which covers alcohol-related incidents. The right insurance company will also offer a range of other policies like general liability, workers’ compensation, errors and omissions, and so much more. To get a quote or learn more about the available polices for your business, call an experienced insurance agent today.
